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holds true, that solves some of the enormous problems that greece has had. >> actually, collecting the money that you're supposed to be collecting. >> it would be a good start. >> it would. >> thank you very much for joining us this morning and it's always a pleasure to have you in studio with us. >> make sure you join us tomorrow. "squawk on the street" begins now. >> breaking news. futures are up sharply after yesterday's sell-off and we continue to watch developments in boston after yesterday's horrible attack. good morning, welcome to "squawk on the street." i'm carl quintanilla with jim kramer and david faber live at the new york stock exchange. housing starts beat big, surp s surpassing a $1 million annual rate for the first time since 2008. consumer prices relatively tame up 1.5% year over year. gold after its largest intraday drop on record yesterday and as for europe that they had been the laggard around the world as
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we saw red arrows earlier in the morning and we'll see if they catch up some of our futures which are improving as the morning goes on. >> quite a session yesterday and people will be looking for some reversals. >> i think they'll take back the 2:45 to 4:00 hit. twitter had it first because the market did want initially react to boston until 3:15. the incident was obviously well before that, and i think you can roll that back because the sense is what's going to happen overnight and that makes sense that people will be worried and the tragedy was the tragedy. hopefully there will be no more and therefore you can take that back a couple of better earnings like a coca-cola, reassure people and it's still an uncertain world and we've had a series of attempts to bounce back after down days that don't last. >> that's right. we'll talk about gold's reversal
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today. we'll do goldman, coke, j & j and a lot going on the business front and we do want to bring you the latest on the investigation into the two explosions at the boston marathon. our senior correspondent scott cohn joins us from boston. >> good morning, the day after marathon day is also the day after a holiday in boston, normally a festive kind of back to work day as people bask in their accomplishments and what the city has pulled off and all of that has changed. i can give you a little bit of a sense of what's going on in downtown boston. you can see some traffic is moving and the streets closed off to some degree in what is a very large perimeter now as the investigation comes down and that's going to be the order of business. what happened? how did they get away with it? who did this and why? and a lot of this presence which includes local police, police from around the region, national guard troops, federal
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authorities, as well. a lot of it is about preserving evidence now and that's going to be what they're going to look at. there is a lot of video evidence, to be sure and a lot of different angles and vantage points of the two explosions and the question is whether any of that, any of the cell phone video that comes in, any of the surveillance video shows who did this, who deposited apparently two packages, possibly in trash recent akels, sending shrapnel around and causing devastation. it started out as a law enforcement investigation, but as authorities said last night that is likely to change. >> this will be a combined, federal, state and lookal effort. it will be an ongoing investigation, it is a criminal investigation that has the potential -- is a potential terrorist investigation. >> our next news briefing is just minutes away at the bottom
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of the hour and cnbc will carry at least part of that live. it is going include massachusetts governor deval patrick and the fbi special agent in charge who you just heard of, massachusetts, two u.s. senators are both at the westin hotel behind me and a large amount of media from around the world. everyone asked me the same question, which is why? david? >> thank you very much, scott cohn reporting, of course, from boston. after a very rough monday which sought dow plunge by almost 266 points since the biggest drop in november. futures are on the rebound. better than expected from coca-cola and johnson & johnson, but on the flipside, target warning that its first quarter earnings citing expectations and citing flat comps because of the weather patterns and sensitive items that did not get purchased
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during what was what i think colder than expected weather during the last couple of months. >> there are good articles in the papers today about how the tax receipts were better than expected so far, and the money back out for your refund, much lower than expected and that could be a dollar issue. i know family dollar flagged that, and the ceo of pvh came on "mad money" and said, it was 20 degrees too cold so we had the -- all of the stores had the wrong merchandise and they had the so-called cruisewear. it was obviously a multi-factor issue and it was not just one thing that says target was bad. walmart was not bad and a very good note. costco, and i'm -- i thought that was interesting. surrounded by costco and walmart. you know those cultures are not weather cultures. >> yeah. ubs initiates with a buy on those two and a neutral on target, but someone pointed out
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the sales trend on target, jim, from the past four quarters has gone from 5-3, 2-9, .4 and now they're looking flat. >> they're not a jc penney beneficiary and walmart is not very renewed in its tenacious way to take on target and underneath the dollar generals. i know people don't associate dollar tree and dollar general unless you've been to dollar tree and you realize what they're trying to do which is go after the target. and maybe target is getting squeezed by the cvss of the world and they're now doing food. remember target moved into food. >> it is an awfully big retailer and not the size of walmart and so people will be looking for a signal that is broader than simply target. you seem to be saying and when you listen to those numbers and perhaps it is more target centric than a broader indictment of retail. >> i don't think if terry lundgren were here from
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macy's -- >> he did not give a particular particularly doubtful -- >> by the way, target stock giving monthly guidance in march. let's stop giving preannouncements in april. if you did have the wrong mix. that trajectory is not what i want from my retailer. >> let's try to cover goldman and coke. 429 versus a 388 estimate. some were saying the quality is a bit strained as joe and i used to try and quote shakespeare a little bit off, but jim, i'll defer to you on some of that, but it does appear they did benefit from what was prop trading and the lending side was higher than anticipated. not bad, but it was down 7%.
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revenues up a bit and the tangible goes up and another 3%. a decent quarter, but the beat perhaps less than might meet the eye. >> a lot of people are seizing on boyd blankfein's quote. we ought to put that in. this was a cyprus -- this quarter included cyprus. business, apparently, i understand has bounced back from the cyprus pause. david -- m & a was not as good, but i don't know if it's that ref lat or. >> it's not. by the way, we talk so much about it and it is important within investment banking and fixed income, currency and commodities is the heart of what they do over there and that doesn't have as much to do with m and a. >> financing side. >> i look at it and i'm amazed that i see in my lifetime that the tangible book is roughly where the stock is. >> $148 a share. >> goldman used to have a huge premium. >> let's dance around the 150 level, jim.
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what does it take to bust out of that? >> i think what it takes to bust out in this market, frankly something that goldman is not going to give you. a huge dividend boost. a more robust buyback than they even have. people sell once the window opens and this is a market where the big boys want 3% yield, okay? and goldman is giving you good book value. it can shut the business it has and make a ton of money and at the same time, i go back over the quarters, j.p. morgan. really great quarter and wealth management and wells fargo, they own stores and people come in and they buy one thing and they take another and that's that cross selling. citi, net interest margin is terrific. rather remarkable expense control. citi was unchanged. wells is bad.
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stocks is bad and wells is good. the stocks, people want, in the end they look at this and say this is really terrific. coca-cola, 42, top. >> last thing on goldman, i do want to mention 12.4% return on equity and there are plenty of firms on the there that would kill for that number. >> they have put it up there above 10 for a while. morgan stanley, for example, would kill for those kinds of borrowing -- >> we'd kill for 7.7 growth for china and there's a lot of companies and countries that we should be more envious of, but we all just pull back and say that's all well and good about wells fargo and buy me 100 times. >> so you buy a hundred times johnson & johnson. >> beats by 4 cents. revenues were ahead. >> come on, under wellman, the most respected ceo in the world, despite the fact that perigo had the biggest shot ever. >> you get the gray hair and you
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automatically have that aura. >> maybe you should stop using the grecian formula. >> don't even start. >> you know i do not. you'll watch it slowly go gray over time. >> maybe you should put some gray into it and get a little gravitas. >> i don't want to do that either. >> hey, china, 7.7. return on equity. i'd kill for some silver hair. i think j & j, putting the lethargy and the laurels and j & j, charitable trust name and all that's happened in the interim is better than it was. >> the stock's up 17% so far this year. that's what people are doing, carl. you know what? j & j is not going to beat cyprus, okay? coca-cola is not going to be the slowdown in china. i don't want to have the leverage to a chinese bank. i don't want to have a leverage to germany deciding that it's
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time for gemini versus the rest of the continent. i just want baby powder and a diet coke. >> coke, not a single region in negative territory and europe comes back after being down five in q4, in the refranchising and some of the bottling operations today. >> i believe that pepsi coke will be every bit as good. this was started when general mill, when the great ken pal introduced me about brian sullivan and said inflation is basically over. the raw costs are going down here. cpi today. >> is diet coke cutting the price? >> no. >> when we come back, the last key economic number before the opening bell and we'll get industrial prkz just a few minutes and the bulls are trying to take futures and implied open to the upside. back in a minute. [ male announcer ] let's say you pay your guy around 2% to manage your money.
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and there's a money-back guarantee. i am a believer. i'm a believer! i'm a believer. find a free foot mapping center near you now. go to or text feet to 467467 and learn how to save $10 on your orthotics. because life starts with your feet. welcome back to "squawk on the street." double the positive revision to last month's up 1.1. utilization rates originally reported at 79.6 last month was the best since '08 and that was downgraded to 78.3 and the new read was 78.5. carl, back to you. >> thank you very much, rick. one of the last of the big three numbers from today. how do we bounceback from
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yesterday's sell-off? we'll hear what krarm has to say in his "mad dash." implied open up triple digits. a lot more skwt kwauk on the street" is back in a moment. revolutionizing an industry can be a tough act to follow, but at xerox we've embraced a new role.
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the explosion in boston yesterday. as we await that, though, a couple of notes about gold who like stocks, jim, is trying to come back. nomura looks like since the '70s when we started looking at daily volume on gold, the following day only rebounds half the time. you would expect more reversion and we might get that today. gold is owned and bought by different kind of investors. they like to buy high and they like the momentum when the momentum reverses. i told people last night on "mad money," the 11:00 old coins, i think they're a good place to be. >> watching that go down and it will certainly be a conversation taking place today. who is get being hurt? where is the pain? by the way, one other commodity we should watch closely is oil. below 100. that is a big deal and a real positive, of course. >> airlines, they should be going up and we're hearing more and more about the u.s. airway
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deal. amr, you should buy that stock and no one wants to buy it. it's not going up. >> we don't need to tell you about the events in boston yesterday. at least three dead at this hour. over 140 expected injured. we will continue to watch for developments out of boston and this is the moment of silence from the four major exchanges this morning.
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which isn't rocket science. it's just common sense. from td ameritrade. we're minutes before the opening bell and time now for cramer's "mad dash" ahead of the market open. all people want to talk about is the incredible, historic move in gold. 1983 you have to go back to see a move of that significance, down in that metal and so many different reasons cited and maybe none of them are right. >> last week goldman put out a sell call and i remember when it came out it was 4:30 in the morning and it was, like, what? you're kidding me.
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gold is already down. >> they do lower their stock today. >> yes, they do. the base metals are closer to a bottom than oil and i thought that was interesting because a lot of people have been saying copper, copper, copper. i look at freeport which is this curious amal gum of copper and gold. this is the antithis market stock. >> we're mad dashing here. what are the names that we should be paying close attention to, and now looking up today, but none the less. >> caterpillar, uniquely involved in mining and that's moving up. i don't trust that. i don't trust that they have the quarter. >> gold corp, barrett gold are all victims of higher finding costs and less gold coming out and the market not that good. i also want to warn people that you have to be careful of the gold royalty trusts because
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you're a gold mine, you're not going to start a new mine right now. wow, you call your guys and say holy cow, where does it stop? david, you alluded to the etfs, the etfs did not act like -- they were driving gold and that's the tale. i didn't like that. >> watching that gld which is the largest by far was quite something yesterday. >> didn't you realize that all of those worries about the gld not being a real security when you go to the gold dealers? >> it did have that feeling which gets you wondering is there forced liquidation? >> let's not forget these are bought with leverage by certain funds and we don't have the answers right now. >> you even said this morning on twitter as someone who liquidating a client's position. >> i have taken apart clients who put up the capital and you wouldn't believe it. these -- and i remember telling
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one of my clients, okay, keys to the house, and i took them. that's the kind of guy you are. >> david, a pound of flesh. i'll have my bond. >> if you prick me do i not -- whatever. it's the way it works. >> you mentioned the goldman call. nat gas is the safe haven which is a big departure. it's literal keys and what happens is i'll give you mortgage. >> it's that frantic. it's 2:00. you find out what money they have or everything that client has is gone at 2 tooichl 01 and if it's a small cap stock that they own, you're, like, oh, my! how did that happen and that was gld which traded like a small cap. >> we mentioned natural gas and
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it was the move down over the last few years and future energy holdings now. they haven't filed bankruptcy yet, but the sponsors want to potentially stay up by putting -- by watching their equity and creditors own 85% and we'll be watching that name and just worth mentioning given how terribly they predicted what would happen to natural gas. >> 30 billion plus? >> you throw debt in 45 billion leveraged buyout. you want deflation? what are those people going to get? exactly what you got on the cdo if it's made up of inland empire housing? >> zero. yeah. yeah. >> the smartest names we know in the leveraged buyout. always a good lesson. >> the fannie mae preferred? >> that's coming back. that's coming back. >> and amr, you actually got
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some u.s. air. >> there is bankruptcy where we had equity recovery. >> surprising. >> speaking of housing. we touched on the starts this morning and single family was down even though people were making a lot of the million annual rate for the first time this year. >> one of the things that comes out of all these bank earnings is, you know what? maybe mortgage lending wasn't that good. i have to tell you, was there a housing shortage developing if you listen to stewart miller at lennar and stewart miller's been very good. he's not someone who i take lightly just like i didn't take leonard and his father lightly. they are primary homebuilders and there are not a lot of homes in certain areas and the prices are being bid up. hence why the two housing deals are good and there's another one coming down the pike that i think will be red hot. >> let's not forget the black stones of the group which brought in aye an enormous amount of housing where real
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estate is a larger asset proportion than it was private equity. >> we're about to get the opening bell and not only that, but the press conference in boston with the special agent in charge of the fbi. the field office will begin at 9:30 and hopefully get more details about the attack at the marathon yesterday. in the meantime, there is the opening bell and the s&p 500 at the top of the screen. at the big board, participants of the nyse's workplace financial fitness form in celebration of financial literacy month and over at the nasdaq, new york cares. new york city's largest volunteer organization. with all that in mind, a couple of things, guys. j.p. morgan on sprint does an overweight as we continue to digest the meaning of the move yesterday. >> yeah. there is a lot of meaning there. there are still questions given mr. ergin's history as to whether he is serious and some have gone and taking a look whether he has commit ams and if he wanted to raise the financing
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or get him committed it would not cost you very much at all and think bahs are very willing to do it and we talked about it on "mad money" he is for real here and there are a lot of reason yes and it will be interesting to see the response on sprint's board in terms of what they say and what they want him to do to firm up that over so they can conceivably move into the option move. >> dan hesse came on "mad money," charlie ergin's balance sheet when this deal is over, david? >> 4.75 times leveraged. perhaps as much as five -- that is including clearwire, and there are other things they may be doing and if we call it five times leverage to ebitda is a large number and what was cited by shareholders and pcs, you have to take debt away from this combined company because we need flexibility to fight with at&t
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and version sxon it costs a lot of money and that will be the key contention when it comes to softbank and why they don't believe this is a better offer than their own because it will lever a company up. >> a killer offering from dish will be what 40 million people in the country want. >> 40 million people that are not served in the urban areas. a lot of interesting components to this and certainly one that will be a lot of fun to watch as the weeks go in. >> of the three big earnings that we follow. we talked goldman, j & j and coke and goldman is up better than 3% even though they had two selling days versus a year ago. >> the target is not down that much, but coca-cola defines this market and a stock that has moved and moved and moved where typically even a year ago you would never pay this price and now people say, you know what? i don't have to read through their release and fiend ond outt
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the macro. obviously, he is doing another great job. the financials of this company are so beautiful and it is what people want. >> we have a price target bumper hershey and that's another company. what do they have in common? costs going down, earnings going higher and the world seems to be just fine for them. talk about sanguine, david. that was me, actually. >> they are sanguine. >> they're sanguine. >> as they should be. when the cadbury deal was done way back when there was a lot of talk about hershey truly being in a disadvantaged position and that has not proved in any way to be the case. >> ever since hershey decided to do this radical restructuring where they moved a lot of the chocolate out of america, you have the raw costs going down there and hershey became a very competitive company with the change in management and you're seeing fabulous numbers from them. >> the dow is up triple digits,
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of course. >> i don't want to buy it here. >> lennar, d.r. horton, pulte and people look at these starts. >> look at lennar. this is what i'm talking about. lennar is not coca-cola. toll brothers got down to 30 and change yesterday. these stocks are still down. toll is still down gigantically. i don't trust this market. i don't trust it. >> follow through on citigroup and by far the best performer. >> that was a big -- >> that was dynamite whereas goldman sachs is actually down. not much, down about a half of a percent and part of this, we said roe, tangible book goes up by 3% and the quality of the earnings is not there -- shally i get to that in the last page. >> and the key is always the last quarter where they can
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fully adjust for what the year is going to be. city was just a very, very exciting quarter even though they used a macro comment that was weak. citi is going to become a very lean, international company. >> can he have that kind of an influence and that short? >> is that a short amount of time? >> i think pandit gave him a good hand and he's improved a hand. if it's poker you have a couple of kings and an ace. we three kings, my friend. >> a lot of people say capital is virtually free. wow have a boom in stocks and a boom in debt issuance. this should be easy, right? >> i think the quarters were good from the banks, but all these guys, they never want to say things are great. what is that? you say things are great and the president calls you the fat guy. you say things are great and elizabeth warren holds things about you and they say what the
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heck are you doing? you can't say things are great if you work at a bank. . >> you have to be muted. it looks like a lot of people like fizzy water. >> remember, freeport is the company that has nothing good to say, right? >> wells fargo wants to say good things and if you say we got this wachovia for a song and we own 30% of the market, and what does that say about the too big to fail jihad in washington. >> you will create wells fargo, one, two and three because you opened your darn mouth so let's keep our mouth shut and keep making money. >> take a look at gold. we're up $34 and not close to retracing yesterday. nomura saying we're running out of superlatives to attach to
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yesterday. >> running out of superlatives. >> it seems like a mischaracterization. yes. >> maybe they got a little confused. >> serpentine. >> serpentine. one of the great movies. >> the in-laws. >> harkin, not talked about enough. >> yeah. >> but we'll see. well, what do you think? in the near-term? if this is truly a liquidation, does the fundamental market catch up? >> we'll wait to see whether they liquidate it again and the margin clerks come back and listen and say we have to take another swipe at it. in the meantime, biogen and celgene, not worried about cyprus and don't have comp issues and it's where people want to be. they want to be in the highest growth that is not affected by anything other than the fact that they keep inventing amazing drugs. amazing drugs. we keep seeing that, biogen,
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doing incredible and breast cancer on top of myeloma. what franchisees? we're starting to get great numberses in the out years. >> i'm still amazed by gilead having a market value roughly that of amgen. gilead is great at this point which is amazing. >> one of the things that's happened, carl which is amazing to watch and the stock goes up a lot and the stock goes up a lot and we're in a virtuous circle moment for a lot of companies that i'm sure the shorts were saying give me a break. these moves are alchemy, and you hear that a lot when you talk with people off the desk. that's alchemy, jim. you like that. no, i like to make money. >> with the dow up 117 now, let's get to bob pisani who is on the four. led downward by precious metals
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and materials and we open up 8 to 1 led up by precious metals and materials. i know, it makes everyone crazy, but the bottom line is that's what's going on. slow growth is everywhere. talk about china and you know it's a big story when they lauered the estimates and we are now 7%, growth. goldman cut estimates on south korea. more slowing growth. about half an hour ago, the imf cut u.s. growth and global forecast. rio tinto, cutting costs to align the cost structure more in line with the lower commodities costs and granger, big multi-industry company and they reported excellent numbers and i watched them. they provide all sorts of office supplies and all over the world. they raised their numbers and watch their multi-industry companies because they sell around the world. housing starts are strong, but the business of offices are
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weak. >> that's a big office reit. and bottom line here is we have a big housing market and matt cally is down about 3%. how often is the stock trading business. we had gecko filing one of those reports and their profits were down 90% on the slowing business and remember, they're merging with knight. carl, back to you. >> thank you very much, bob pisani and granger. that's a great tell of the real economy. boy, it's hard not to -- >> there's a lot going on regarding housing. we'll keep our eyes on the homebuilders. >> these people want to try to find a hole in the housing starts, good luck. this is a very big move and we're building far fewer homes than what are destroyed by fire and flood. a lot of people will live with their mother-in-laws. >> despite what we know about the price of building products, right? and the cost of contractors and electricians. >> and i think some of those
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costs again will come down. copper came down big, and aluminum bid. we'll take you to boston. we're expecting this to be the fbi in charge of the boston field office and deval patrick there and the u.s. attorney carmen ortiz. let's listen in. >> everyone, thank you for coming this morning. less than 24 hours after yesterday's act of terror we wanted to organize a briefing for you with the information that we have. the mayor is here, the members of our congressional delegation, all of the law enforcement leadership. we have several people who want to present to you this morning and take your questions. 's couple of points i want to mention at the outset. i told you yesterday that the fbi has taken charge of the investigation, special agent in charge rick delaurie will speak.
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other parcels, all other parcels in the area of the blast have been examined, but there are no unexploded bombs. there were no unexploded -- unexplod unexploded, explosive devices found. 150 people were injured yesterday in the blast, some gravely. our thoughts go out to all of those injured and killed and to their families and friends. i personally want to thank the extraordinary first responders for their extraordinary work yesterday. every single one of them, those who were on site and those who got to the site performed beautifully as have the area hospitals and i've been calling around to the heads of the hospitals personally to thank them as well. it's our hope that tomorrow we will organize an interfaith prayer service to help our community heal.
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we don't have details on that yet, but we will provide those details when we have them. there is a support center that was opened yesterday in what we call the castle opposite the park plaza hotel in arlington and steward street, i think it is. the mayor has provided staff to help people cope with -- with this extraordinary event, and it will be open from 9:00, i think until 5:00 or beyond this evening. finally, everyone should expect continued heightened police presence and everyone should continue to be vigilant. the investigation continues, and until it is done all of those in law enforcement represented by the leaders here will be present in force in the area around the blast and throughout the city, and with that, let me turn it over to mayor menino. >> thank you, governor. yesterday the terror was brought
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to the city of boston. tragedy was brought to one of our neighbor also. this is a close-knit place, the city of boston. here we know our neighbors and we grieve for them. we grieve for the little boy from d'or chester. we know our heroes also. they're the men and women who wear the badges, the helmets and the runners who helped us yesterday during the time of need. as we go together on this issue with all of the law enforcement officials we'll make sure to stay close together. we'll get it it under control and let's continue to work together. let's give a helping hand to individuals who may need it during this very difficult time in our city's history. i just say to all of you after 20 years now i have never seen law enforcement pull together, working together to solve our crime in our city as they have, but also how people pulled together, the business
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community, the neighbors and everyone. this is a tragedy, but boost op is a strong city. we'll get through this and like the governor said we set up a resource center over at the castle, near the park plaza hotel. staff will be there available to give information to individuals that were involved in the marathon and it is open it from 9:00 to 5:00 and the phone number is 635-5040, i believe. the hotline -- that's the wrong number. 617-534-5050. and also, the 24-hour hotline that you need information also that number is 617-635-4500. over the last several hours we received calls from all over the world asking us information about our tragedy and how they can help us. so this is a bad day for boston, but i think if we pull together we'll get through it. we're a strong city and a lot of people willing to work together to make this a better place for
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all our people, and so as we gather here today with all our officials let's say boston will overcome. >> thank you, mr. mayor. >> senator? >> thank you. >> thank you, governor. thank you, mr. mayor. the president of the united states has pledged his full support in all efforts to keep the city safe and to find the person who did this and bring them to justice. we did not have to reach out to the president. the president reached out to us. he called the governor. he called the mayor and the members of the delegation because the president is actively involved here and responding. on behalf of our congressional delegation, senator cowan is here with me and congressman lynch and all of the members of our delegation. we want to extend our thanks to the first responders, to the firefighters, to the police officers, to the ems, to everyone on the scene, including the volunteers who came and helped those in trouble and
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helped save lives. we also want to thank those from all around the country and all around the world whose prayers and thoughts and offers of help have poured in. we are deeply grateful, as the mayor says, boston will survive. >> thank you, governor. good morning, my name is rick delaurie and i'm fbi special agent in charge. i would like to thank first responders from boston ems and boston fire department and the volunteer physicians, nurses and medical staff who volunteered their heroic actions saved lives yesterday afternoon. we continue to work shoulder to shoulder at the boston police department, the massachusetts state police as well as all of the jttf affects and our message is clear to bring to those responsible. the citizens of the city of
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boston and the commonwealth of massachusetts want and deserve answers. this group of men and women standing before you today pledge to do everything possible to get those answers. this remains a very active investigation and our active investigation throughout the area goes on. however, there are no known additional threats. we continue to interview various witnesses and process the crime scene which could take some time. the citizens of massachusetts and the city of boston should expect to see the fbi and its jttf partners conducting investigative activity in the greater eastern massachusetts and boston area. assistance from the public remains critical in establishing a timeline of event which is leads to swift conclusion through due diligence and strong investigative activity. we commend the public and commend the citizens of the commonwealth of massachusetts for the information that's been provided to law enforcement so far and we strongly encourage that assistance to continue.
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it is paramount to explain the fbi and our jttf role to a greater extent. the volume of tips we received in reiterating the resources we provide. we have received volume news tips in the last 18 hours since the incident. we continue to encourage individuals to contact that line with any additional tips. we are bringing additional victim assistance and evidence response team resources from our headquarters components and other field offices to boston and they are on site working as we speak, processing evidence at the crime scene. >> to the extent that the crime scene still plays in the copley perimeter and continues to be a crime scene, it may be that for several days. the fbi, jttf is logically following up on a variety of leads and you will see us and the lauchl partners interviewing and maybe a neighbor, coworker or yourself in coming days and we plead you to cooperate with law enforcement authorities. the fbi and the jttf allow for
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swift action which will hopefully yield quick results and that does not dem inish our diligence and persistence in combing through the high volume of evidence and leads that we are processing right now. we are just beginning upon that path, thank you very much. >> i'm gene marquez, at this time, atf has been a national response team act vague and we are bringing specialists to the scene and we are working with the jftf. we have certified explosion specialists and we have explosive officers and special agent bomb techs and k-9s trained to detect any explosive devices or any residue. that the time we have approximately 30 forensic specialists in, around or on the scene, and to dispel any rumors
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there were rumors floating around that there were up to seven devices at one point. that is not true. i think that happened as a result of some suspect packages that were disrupted, but we only have two devices that we're aware with of and both of those devices were the ones that involved and did the damage and were involved in the explosives. at this time we are looking for the public's cooperation. if there is any video, any photographic evidence if you can please contact the fbi hotline or the city's hotline, we would like to review any kind of media that you have out there that might give us investigative leads and weir pursuing those investigative leads at this time. the scene will take several days to process and we just ask for your patience as we work in that area and for your cooperation.
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>> good morning program i'm united states attorney carmen ortiz. i want to extend my condolences to the families of the loved ones who were lost in yesterday's attack on the city of boston. as well as those that were hurt and may still be fighting for their lives. our thoughts and our prayers go out to them. what happened yesterday was a terrible tragedy yet it was amazing to see as you have heard from my colleagues here how people just helped one another, ran toward the blast just to assist another person in greater need. people who were just there for those that were hurt and in a dire situation. it was amazing to see how the city of boston, and people from around the world that were part of yesterday's boston marathon helped one another, consoled each other. there are so many moving parts to an investigation such as this, and i can't begin to thank
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everyone who has been involved. law enforcement, medical professionals and emergency responders and really, regular citizens who became heroes yesterday. >> i want to repeat, as i stated yesterday, this san active and it's an ongoing investigation, but rest assured that we are bringing all of the necessary resources to assist in this matter, and that we will conduct all that we can with all of our law enforcement partners. i've been in touch with the attorney general several times, eric holder, and he has pledged all of the resource from the department and others on behalf of the federal government to help boston recover from yesterday. i ask for your patience and your understanding as we continue to pursue leads, to gather evidence and to get to the bottom of who did this and why. thank you.
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good morning. my name is ed davis and i'm police commissioner for the city of boston. we are in the process of securing and processing the most complex crime scene that we've dealt with in the history of our department. we are doing that under the direction of the fbi and in partnership with the atf. we secured the perimeter with members of the national guard and others here. i would like to thank the people working closely with us. we received office of assistance from chicago, los angeles, units have responded here from new york city and baltimore and we are working very closely with all of our partners on this complex investigation. i -- i want to stress that the area around the crime scene which yesterday was 15 blocks has been reduced to about 12 blocks at this point in time, and we will continue to collapse that crime scene as the facts and circumstances make that available. we want to open up as many
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streets and get people into their buildings as quickly as we can. we're working diligently on that. please be patient with us in the time that we need to process the crime scene. we expect that scene will go for another two days, anyway, and people should make appropriate plans. again, i want to stress that any information that you have, any videos or photographs that happened not just at that scene, but anywhere in the immediate vicinity could be helpful to this investigation. our focus is on processing that evidence right now and we're looking forward to working with our partners to bring the individuals who are responsible for this heinous crime to justice. thank you. >> thank you. >> good morning. my name is timothy, i'm the superintendent of the massachusetts state police. as i said earlier in one of our briefings there are two or three parts to this investigation. there's the investigative part
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which clearly the fbi has taken the lead on, but there is also a logistical presence component to this, so i'm speaking to the public, you are going see an enhanced presence from the boston police, from the state police, from the national guard and from our law enforcement partners through the metropolitan boston area over the next days and probably longer. that's not for any particular reason other tan to provide some comfort and to the public who are using transportation centers or going about their business and you will see national guardsmen and that presence will be significantly enhanced and we're doing that for the comfort of the public and we're looking for cooperation of the public and it's not to inconvenience anyone and we don't think it
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will be. you might see an enhanced presence at logan airport and that's for no particular reason other than to solicit cooperation from the public or seek out tips and information. the last thing i want to say is there has to be hundreds, if not thousands of photographs or videos or observations that were made down at that finish line yesterday. and they're sitting out there amongst everyone that's watching this event this morning. and i would encourage you to bring forward anything. you might not think it's significant, but it might have value to this investigation. the mayor is giving you tip lines and the fbi has them as well. if you call in, i assure you that someone will follow up on your photographs and videos that you want to submit for your cooperation. thank you very much. >> good morning. my name is daniel conley, i'm the district attorney here in boston. what occurred yesterday in boston was an act of cowardice.
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while there will be an opportunity in the future at the conclusion of this investigation to officially define this act, make no mistake, an act of cowardice and of this severity cannot be justified or explained. it can only be answered. to that end, some of the finest investigators at the local, state and federal levels -- >> that is the briefing out of boston for now. the two big bits of news apparently from the governor deval patrick that there were no more than two bombs. there were some reports yesterday that there were unexploded devices, that they're knocking down that report. fbi saying that there are no known additional threats and of course, ed davis, the head of the police department there saying the crime scene was reduced from 15 blocks to 12. he called it the most complex investigation they've ever undertaken in the city of boston. >> incredible. they know nothing. >> also striking the number of officials who asked the public for videos or pictures,
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obviously, zee to imagine that area was blanketed by coverage of all sorts of media. i think four separate officials made a plea to the public asking for information that could help lead to the perpetrators. >> cell phones will solve this. i don't know what they have, but the cell phones might solve it. >> our scott cohn, i believe, will bring us up-to-date in a little bit. in the meantime we'll close out this hour and we'll tackle both this impact and -- >> i don't trust this market. i don't trust gold and i don't trust oil and let it rally and then you can sell off here, frankly. we'll examine what the psychology of it here, second day and obviously, was there a lot of damage done yesterday and we'll look at oil, and i have halkon. hk, charlie ergin of the oil business and so, look, i'm not saying it's business as usual. it doesn't work out like that, but i am saying that we'll find the opportunities tonight and the places you have to go to.
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>> the governor said just that. the city of boston will be open today, but it is not business as usual. >> i'll tell you, my daughter is up there, and i know what it must be like for the parents who have kids up there and it must be horrible for anybody who lost family, lost -- >> our thoughts are with the people of boston. >> we'll see you tonight. 6:00 and 11:00 eastern time. a lot more "squawk on the street" is back in a minute. i turned 65 last week.
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the street," a day after the dow's worst session in five months when we lost 265 points. the dow is trying to get some of that back, bouncing back from yesterday's sharp sell-off. we're up about 95 points right now. gold seeing nice reversal from its biggest decline in three decades yesterday. we were down 9% yesterday, up about 1.5% today, but of course, we'll begin with the news out of boston following yesterday's deadly blast. we just got a news briefing from officials in boston and our scott cohn joins us this morning. >> good morning, carl. that news briefing still going on, i believe. police commissioner ed davis is still at the podium and he talked about this being the most complex crime scene that they've ever processed. authorities echoing that and that is particularly amazing
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when you think about how much evidence there should be as far as photographic evidence, cell phone video, surveillance cam a cameras, which they say they're going through and still appealing to the public for more of that and yet they still don't seem to know who did this or why, and they also are looking at any sort of explosive residue. they have literal lly locked do this area around the finish line of the boston marathon and a still large perimeter. it was 15 blocks and it is now down to 12, but they say it will take several days to process that, and this gives you a sense of how complex this is and whoever pulled this off clearly knew what they could do and what they could get away with and did and authorities are left to try to figure out why they did it. carl? >> scott cohn, we'll come back to you. of course, a lot this morning and thanks for the update there.
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i want to bring it back to the markets. as we said, the markets were higher after the sell-off both in equities and some commodities. >> the managing director with douglas c. lane and associates and castle lark management. guys, good morning to you both. >> let me ask whether or not the easiest thing to do today is reverse the last-minute sell-off where the markets did appear to respond to the attack. >> i think what you had yesterday in the afternoon was a massive sell-off just with news and nobody knew what happened, but i think you also had the start of what may be a correction, but especially on the commodities side where there was a lot of pressure and there was a lot of leverage in that system in terms of buying commodities and buying gold and when you get a lot of selling pressure people need to sell other parts just to cover, so you saw a complete sell-off there that just picked up momentum that day. >> would you expect that to flatten out once those players settled their positions and however they're going to do that and fundamentally catch that
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market? >> i think so, earnings will drive the next step here whether it's up or down. commodities coming down will be a positive for the equity markets because so much of the inputs that go into the equities are so dependent to the inputs that are going up and up. >> if we assume that the crash we've had some sections of the market is maintained and there isn't a huge bounce back and possibly a huge erosion of the commodity investments, how does that change the landscape and the choices that people should make about what will win moving forward? >> sure, what interested me yesterday is how different sectors of the financial markets behave, right? the bond markets up all day, even after the explosions gold didn't catch a bid. it points to your obvious point here that some of these commodities, particularly the precious metals were overowned and there was probably a big, heavy seller out there. at the same time what you saw yesterday was no real back up in
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ed krity spreads and there was no real deterioration in credit which tells you a lot about how investors were positioned with respect to the overall economy and in that respect i think it's very bullish the way credit keeps holding in here in spite of what equity investors are still worried about which is this second half of the economy in 2013. if we see continued positives out of the u.s. economy, there's no doubt in my mind that this will be viewed as a wonderful buying opportunity and that the compliment from a weaker or softish commodity environment will drive that even further and higher. >> when i see you, the one commodity which is oil, give me your take here and correct me if i'm wrong, but you've always been a big bull. >> yeah. reality is oil. we just don't have a lot of new sources for it and you really have to take the world and slam it to almost zero growth before that would really undermine the
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supply/demand picture for oil. oil production grows about a million, a million and a half barrels a year and demand grows about that amount and the cost structure to bring that on is now $80 to $90 a barrel and i can't say this doomsday scenario that people say the oil markets will be prone to, and if it fits in the broader picture that the global economy is doing fine, you will see oil bottoming here in the next $5, $6 a barrel and probably making close to a new high by the end of the year. so everybody understands why that's a positive, but there are some who want to read both the decline in crude and gold as, all right, we're not going to have inflation and we're also not going to have growth and at least not the kind of growth that the fed's been aiming at. >> i think these are good things that happen. in the last two years when qe started there was a big rush to commodities and there was a big rush to oil and what's happened is supplies caught up to demand and that's what happens in
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commodities. you start up ahead. you have the ability to catch up and now what you're seeing is a lot of the leverage coming out of the system and people that bought it on leverage because of cheap credit and they're finding they've got to sell and then those prices are what we think will cause equities to go up higher. in the case of oil i think i would disagree. we've had enough over the time and years there's shale gas coming and there's fracing all over the world and people are looking at other things and you the supply/demand in balance and the thing that's keeping oil up is speculation. >> isn't it also about china and the softness there and if you have softness enough to do this in commodities and you undermine cyclicals in the commodity as well. you don't undermine them in the manufacturing side because their costs are going down and as their costs are going down then their margins are going up and their ability to make more money is going up and that's what you will see in the back half of this year. >> so both of you are basically,
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oh, this is great. commodities are going down and the market is going up. >> commodities are going down, and i can see you argue the same way, too. >> i don't think you can lose sight of the fact that it's the world economy that's making and driving everything here. the way we are pricing financial assets off of world economic growth is the key here. credit is telling you, the growth looks fine globally, and we haven't talked about the impact of adding all of this liquidity by all of these central banks and you throw those two things together and you have no real disaster scenario for commodities and you probably have a much more exciting outlook for earnings globally. >> thanks, guys. we'll see what today brings, the dow's up 107. thanks. >> within that, of course, one of the major focuses is on gold today after it settled at the lowest level since february 11, 2011 yesterday. however, seeing a reversal, as you might expect. we'll take a closer look at the moves today and see what they mean moving forward and for
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those people in the street, jane wells will be outside one of those well-known we buy gold stores ahead. plus the departmen of homeland secretary for policy stewart baker will also be here to weigh in on what is next for the united states after the tragedy in boston. how do traders using technical analysis streamline their process? at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent. i'm colin beck of fidelity investments. our integrated technical analysis is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.
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welcome back. shares of dell not doing much today and we did have the commercial commit of dell reaching a deal with carl icahn
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that prevents him from going up above 10% in terms of his ownership overall of the company, but does give him a waive tore talk about other investors as he pursues potentially his plan for some sort of a recap of the computermaker. of course, there's a look at carl. we'll see where all of that ends up. from my perspective, perhaps one of the most interesting things here will simply be the calendar as blackstone continues to do its due diligence. when will it, if it chooses to present a firm offer for the company and let's call that the middle of may. how is the special committee going to be in a position to act? how quickly will it be able to act and when will they get a vote on the deal, that being the silver lake deal? does it perceive what would be the annual meeting? and if it doesn't, is it possible carl, it's to run a proxy fight, right? at that annual meeting which
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received the shareholder vote. anyway, it's just another issue of the special committee of dell to keep in mind and it's a very special committee. >> it still has that 1365 deal on the table. >> i keep adding wrinkles to that story. unbelievable. kayla tausche is back at hq. >> we are watching shares of black rock, blk off the highs of the day with questions about margins following the overall good quarter from the asset manager. i wanted to point out comments that the ceo just made on black rock's conference call and he believed re-risking came from cash and not from bonds. the risk on trade is in full swing and they're talking about black rock about when the market has a pullback, not pulling back and not selling. he says he believes markets will go higher this year and he's extremely bullish on equities
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going forward. >> thank you for that. >> interesting intraday action. when we come back, the impact of twitter and facebook in the wake of the tragedy in boston and a nice reversal in gold today after the over $150 drop yesterday. are the technicals pointing to yet another leg down? we'll check the charts. all stations come over to mission a for a final go.
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the tragedy in boston sending ripple effects today. what is next for american security? the department of homeland security former aest issant secretary for policy stewart baker joining us now on cnbc. good morning to you, sir. what is your take away as a former policy man from what we've witnessed over the last 24 hours. what should the response be? >> we can't be surprised. people have been trying to kill americ americans, al qaeda has been trying to kill americans since 2001. if this is an attack by al qaeda it's not surprising and it's an indication of how degraded they
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have been that they amounted relatively small, relatively something that could be done by a relatively small number of people to do this. we don't know for sure it was al qaeda, but it certainly has that look. >> i find it fascinating that that is your first thought that it would be al qaeda. the present view seems to be that it might have come from within the united states and not least perhaps of the timing on patriots day and the history that that evokes. the washington post pointses out when timothy mcveigh had the right-wing groupsing with vkted before and the possibility of within the united states and that is the case again now. >> i of course, can't rule that out, but the sort of attack that we're seeing, the evidence, the fragmentary evidence we have,
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multiple explosionses and more or less simultaneously at a big eve event, an attack on individuals who are -- whose only connection is that they're all americans, it feels more to me like an attack from the same people who have been trying to kill us for the last ten years, but we don't know yet and there's no point in jumping to conclusions because for most of us it doesn't really matter at this stage. >> mayor giuliani was obviously asked about his own feelings this morning on a separate program and says he thinks the real surprise is that this hasn't happened more often since 9/11. do you agree? >> yes. as i said, al qaeda has been trying plot after plot after plot after plot and they've gotten smaller and smaller as the years have worn on, this is
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the sort of thing that can be done with a couple of people. if they have managed to inspire someone or get someone into the country to carry out the attack, it's not a surprise, and it really is a testament to the people who have been trying to protect us that this kind of thing hasn't happened before. >> your point being that the ambition and the scope of the plans and the plots, assuming that it is someone who is state sponsored have had to get smaller because of the watchful eye of law enforcement. that's a testament to what they've done over the years. >> i think that's right. it's very hard to get a group of people into the united states with the plan to do something serious, and so what we're seeing is a much less ambitious set of attacks and that doesn't mean they aren't terrible and i don't mean to suggest that, but we are going to take this in stride and we're going to find
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these folks. the bureau is very good at dealing with this kind of evidence and crime scene. they're going to track the folks down, and i'm reasonably confident that within a few days we're going to know a lot more about the attackers. >> it's certainly a very complicated crime scene as they said in the news conference. >> in summary, mr. wilson, there are several thousand people across the united states that are worried about the public, vents that they're planning to hold in the near future. soft target, if you like, which are so difficult to have security. what would you say to them? what kind of level of security and what kind of search can they hope to achieve here? >> there is no way they could search everyone that wanted to go to the boston marathon and we shouldn't be trying to do that. unfortunately, this is part of life. we need to make sure that we can catch these people, that we can catch anyone else who tries to
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engage in this kind of terrorist activity, but life must go on and we must continue to be the country that we are and my suggestion is that we make sure that we have lots of cameras and lots of ability to catch people after the fact and that everyone that goes to the event is aware that there is a risk and watchful and concerned about what's around them and what's happening around them. >> good to see you, sir. thank you for joining us stewart baker formerly from the department of homeland security. >> gold is on the rebound after seeing its largest intraday drop in dollar term yesterday. how should you be playing that volatility in the commodities and particularly in the gold market. let's bring in dave wilson, director of metals, research and strategy. it's been 30 years since we've seen a percentage drop in gold,
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the likes of which we saw yesterday. what do you do when you talk to your clients? i'm sure all of them are throwing up their hands and saying, well, what is this about? so what do you tell them? >> well, we obviously have season a reasonable bounce today, but it looks like it has run out of steam for the time being. there's obviously a lot of nervousness there and there is a feeling amongst the traders that we could still see more of a down side. so i think a lot of people are sitting on the sidelines at the moment waiting to see where it goes next. after such a big falloff, this is the biggest fall we've seen in nearly 30 years. you would expect some degree of bounce. it does look like the market is oversold, but for the time being over the next week it's still going to look a little nervous. what are we to make of that sell-off, not just yesterday, but over the previous weeks. is it telling us something about the global economy and is it simply fore selling by the guys
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who are levered up? what is it saying? >> we did see a lot of selling on friday which seems to have sparked a downward momentum and a lot of stocks have been str triggered. as a house, we've been bear earn toward gold and the principal reason is there is no inflation. why do you buy gold? most investors buy gold under the inflation hedge and there has been a huge increase in central bank balance sheet that inflation fears will be growing, but at the moment that seems to have dissipated and they're growing futher and future in the future and so what is the reason for gold and particularly equities. >> and what the deputy governor of australia said at a lunch. she said if you think about the intrinsic value of gold, it's not a lot. people believe that other people
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believe it's worth a lot when you describe other markets like that, she says, the word bubble gets thrown about. yes, a lot of people use the term bubble, and i'm not sure -- if you track gold against the central bank balance sheets there is a reasonable correlation and you can see with the devaluation of the dollar, gold is sort of -- has kept its value essentially, but the recent sell-off, i think is somewhat extreme, but having said that our view really was that gold was in this situation where we are seeing other asset classes taking off and we saw little reason to continue to enlarge gold holdings and we're seeing these extreme moves almost get to gold prices that we were expecting into next year, so it's brought a lot further forward.
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>> what should we make about base metals? are you still negative on the other metals in the area? >> the base metals in relative terms were almost unscathed to the precious space. with copper in particular, we've been negative on copper and we've seen this slowing down in china and the acceleration in mine supply and prices are trading at 7,100 to 7 $200 a ton and we would target these price levels to the end of the year. the event of last week have brought it forward and would we see an upside for copper? no. we still see very high inventory levels were at 890,000 tons across the different exchanges that came to the shanghai exchange and we were at the highest level since 2003 and we expect inventory levels continue to rise which is putting a lot of pressure on the front end of the forward curve and it must
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really suggest that copper prices will struggle meaningfully from any upside moves from here. >> thanks, david. >> david wilson, sitting director of metals, research and strategy. >> the market having a rebound in the session. and the dow is less than 100 points and that's after yesterday's 265. we'll talk to art cash into help us.
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welcome back. we're keeping you up-to-date on the latest news out of boston this morning. we want to take you outside the new york stock exchange here where we find our own jackie deangeles and get a take on security on wall street. >> what happened in boston yesterday definitely hit home for new yorkers in manhattan especially in the financial district where images of nech are still very much at the surface. while new york city is stepping up security efforts around the city, it's business as usual at the stock exchange. it doesn't comment on security issues, but suffice it to say that security is very strict here on a daily basis. with respect to the rest of new york city it's high-traffic area like the world trade center site which is nearby, the empire state building and times square where they are stepping up security efforts and those efforts are very visible
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especially in times square where police cars are lined up and they're making their presence known and mayor bloomberg is saying the city is prepared to protect the inhabitants here and critical response teams are in place and more than 1,000 counterterrorism officers have been deployed. many analysts out there that are looking at what happened in boston are saying there is no need to be alarmed if you are in other cities. these increased precautionary measures, of course, are a positive thing. what happened in boston doesn't necessarily mean that we'll see something like that in another major city, but still, we're getting mixed reactions from a lot of people who live and work down here. some people are very scared saying they don't want to walk around and they don't want to ride the subways and we have other people saying this is the new reality, the new normal, if you will, in a post-9/11 era. we will hear more from the police commissioner ray kelly and mayor bloomberg. they will be holding a press conference at 12:30 today to give us more details on security measures in new york.
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simon, back to you. >> thank you very much, jackie. >> let's get back to the markets here. some pretty nice gains in the dow after yesterday's brutal 265-point slide. ubs' director of floor trading art cashin joins us at post 9 to talk about yesterday and today. what do you think these early gains mean, art? >> it's a little bit of a rebound, partially a sigh of relief. yesterday's sell-off was in three parts and the first part was about the general weakness, the carryover of what they had seen on friday and then the second was fear of contagion, that the selling in the metals markets might spill into the equity markets and then about 90 points on what happened, unfortunately, in boston and i think that's why you're getting 90 points back today. there was a hopefully a justified projection that it was a single, vent and there might not be a series of problems and we have a rebound in gold which
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is getting a little iffy here which has made our rebound iffy. you've made the point this morning that the gold bugs want to use what's happened to the metal as some sort of reassessment of inflation. is that fair? >> i think they actually are trying to dismiss any inflationary aspect and there's a great conspiracy theorist movement in that area and it's always, you know, the fed is plotting against. what i picked up on is that if you look at things like the tips which are also inflation protection, they've seen withdrawal in tip bond funds for three months in a row now. so i think people are beginning to say, gee, inflation is probably not a threat. i believe there is some deflationary threat in europe. i think mario draghi has his hands tied because he doesn't have a banking union and if you look at central banks around the world he's been the least active. so you look at deflation in
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places like greece, maybe a little spill over into cyprus and on a side bar, cyprus got blamed about friday and monday. cyprus was the big loser in the gold sell-off. if they were going to lose any of their gold to pay part of that bailout it's 14% lower. >> that said, art, if you identify the deflationary forces, if you are correct, what does that mean for stock investors back here? >> i think it won't be immediate, simon. i think what you'll see is it began to trickle in, and i think what you may have seen both in the announcements of weaker than expected things in china and the fact that if europe begins to become another part of the problem that that will become an increasing drag. i don't think it's going to be the kind of thing where they wake up tomorrow and say, gee, he's right. there are some deflationary
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pressures. i think they're going to see it in a much larger sense. they're not here. they're not in the united states. not yet. >> the vix, how important is it to keep an eye on that. people like to make the point, over time, your returns on stocks when it was better, when it was over 20 and not under 20. >> i understand that, and it is something you want to look at, but it has been like the ekg on the main for so long, its had very little movement and it takes an event look boston to get it moving and you're right. it's a better buy. let's hope people are right about that. >> art, thanks. good to see you. art cashin at post 9. >> let's dig deeper into one of the big movers this morning. coca-cola shares are doing very well in the wake of earnings release and an announcement about restructuring and john fausher is a senior analyst at j.p. morgan and he has a rating on the stock and a $43 price
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target. welcome to the program. >> were you pleased with coca-cola today? >> i think if you look at what they printed today there have been some concerns given some weakness in the u.s. and given weakness in brazil that they can disappoint from a volume and revenue standpoint. they came in relatively in line, earnings, a tiny bit better and what you're seeing is relief today combined with what was a big move today, particularly for staples and so i think investors are encouraged. what about what the ceo mucktar is doing. in 2010 he brought back the bottlers to streamline them and maybe this is why they're getting the bounce today that they will sell off that type of activities and what does that mean for shareholders in practice. from a financial background, it will be remarkably little.
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so it cob diluted is the market saying look, these are low-return aspects and we'll put up with a little bit of dilution, but we just want to see some progress. although the progress is slower than what the markets expect, this is the beginning of the program and we're excited about it and we'll figure out the details later. >> do you get special dividends? is that what we might be preparing for? >> oh, no, no, no. this is one of those things that what you will see is they'll make agreements with smart bottlers in the u.s. to dole out assets and they may get some cash back and other considerations. this is more of a manufacturing, restructuring type of situation as they're going look to spin these assets off their balance sheet. >> hey, john, can you focus in on europe for a moment? given everything they've had to deal with, flat looks pretty good. >> is that more dead-cat bounce than real growth? what do you make of that volume growth? >> yeah. so volumes were flat, you know, in the environment that they're
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dealing with, it's not bad. it's a sequential improvement versus what they did in the fourth quarter. they drive a huge piece of their volume and they've got a lot of big businesses in traditional western and southern europe een marks where the economists are doing very poorly. i think they're working incredibly hard. flat isn't a bad result. germany continues to be the better performer out of these marks although great britain was also up which was somewhat encouraging and markets like spain and italy and to a lesser extent, france, they just got so many economic headwinds, flat is not that bad and it's the new up, as they say. ? your price target is $43 which is basically where we are at the moment and what is the best way of making the best dividend in your you know verse. they've had a phenomenal run and we're seeing everybody move in and each with the move today coke is still slightly underperforming the group and
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there's been this fun flow issue. what you have to look at is some of the staples names and that's why we've had more of a preference for the beverage names and the neutral on coke not withstanding and some of the household product names are more expensive. so a name like pepsi where they're benefiting from some of the same trends and should return to earnings growth this year, that's probably our preferred name in beverages right now. >> thank you for your time, from j.p. morgan as coca-cola reports. >> the volatility in gold are certainly sending investors into a tailspin. is the general public looking to get out of its gold? jane hunt is on the hunt for answers and he' s ans and she'l next. and he'll weigh in on the market and where he sees equities going next. that's after the break. mine was earned in djibouti, africa, 2004. the battle of bataan, 1942. [ all ] fort benning, georgia, in 1999.
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we've had major swings in the bull market, but does that translate to selling of personal gold, too? who better to ask than our own jane wells live in los angeles. good morning. >> hey, carl, while people may be buying and selling gold ask silver etfs, a lot of other people are buying ask selling gold is silver coins. >> we have 23 kilos and 165 eagles. >> at california numismatic investments near lax one customer late yesterday was selling this, over 1600 ounces of gold and would not talk on camera and wouldn't even let us show his face and they're selling gold about $75 and buying it for about $25 above spot and volume is up. >> up until the recent drop which was the end of last week and the beginning of this week i would say that we were definitely selling more especially silver. >> now we were selling more. okay, now that's really balanced
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out. we've seen more sellers come in the market in the past couple of days. >> there was literally a line out the door and inside one of the few people willing to talk was john garten who has been buying silver all of the way down and soon expects to start buying more gold. >> obviously, it will go down and maybe another $100 and then it will start its way back up. >> and that's when he's going to start buying again. as for the guy selling 1600 ounces yesterday, that's just part of his stash and though he's not a believer in the dollar, that's when he exchanged the gold for for now. carl, we did talk about bit coin, also. >> there's another thing that's had a rough couple of weeks. jane, thanks so much. jane wells joining us from los angeles? markets are bouncing back from yesterday's sell-off. our next guest says, however that you should pause and re-evaluate your investment plans now. joining us on the cnbc newsline from boston is larry glazer, managing partner and co-founder
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and portfolio manager for mayflower advisers. >> good morning to you, lawrence. why the re-assessment. what do you think has changed now? >> candidly, this market does scare the heck out of me and being in boston it's not just because of the events that happened yesterday or even the dramatic sell-off that we saw in gold, but rather that's the continued weakness that we've seen in interest rates, oil, and industrial commodities and the signal that it's sending to the market. on top of that point, it appears increasingly that the market was not well positioned for these deflationary fears that have come back into the market. increasingly, the marks believe that you can fight inflation, but deflation is a spiral you can't get out of. to send the signal to the market of continued weakness, it is very hard to convince investors to respect this rally. it's hard to convince ceos and cfos to invest and hire if they don't have confidence and when rates are zero it is easy to see why they don't have confidence. >> i understand that in a normal economic situation. >> the problem is that a lot of
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people don't respect the rally, but they still are forced to buy it and exactly to the point that you're making, the federal reserve recognizes the problems in the economy and is pumping it full of cash. therefore the stock market, and it's been incredibly resillient so far. you can throw anything at it and it still gained day after day, and that's the point, isn't it? you just hold your nose and buy it. >> to a degree and you could have made that argument in 2007 and you could have made that argument in 2000 and 1999. you just hold your nose and buy it. what we see is investors chasing the most defensive areas, when you see coca-cola and general mills and these great companies and that's the leadership area of the market, that doesn't express global growth. we want to show those, the energy names and that's real in this country and that's not going to get the respect. the housing recovery is real and it's not going to get that respect and we need to show that is the future of the economy and
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to do that, the economy will stand on its own two feet and otherwise it will be renters of stocks and not buyers of stocks and they'll believe that the fed is propping up the market and the market can't stand on its own two feet. what should we do? what is an investor to do now? sure, again, the volatile that's crept out of the market can be an opportunity for investors and if we look at what's been left behind in this rally and we talk about something like energy. if you believe the global growth story is real and some of the industrial names that are down in sympathy with gold and that's where an opportunity lies and if you look at the miners and the industrial names and those are great companies and they're not where the ak is and perhaps we should gravitate to some of the areas that have been left behind and look at the overseas markets. if you want yield, why chase the domestic defenses when you can chase the foreign defenses and potentially get upside and potentially get the defense of currency at the same time rather than chase what everybody already knows. >> to many people that's absolutely crazy and we're not
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sure about the chinese economy and day in and day out in europe, the situation there is going to get worse before it gets better. >> sure. >> you know, they could have made the argument last year tha. last year they could have said it's all about apple. i think we need to broaden the horizons if this is going to be sustainable. >> let me go there and take you to a live shot of the white house. the white house is lowering their flag to half staff. flags are to be lowered at all public buildings until sunset on april 20th. there are at least three dead. more than 150 injured. this is echo of what we saw
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in the wake of 9/11. a lot more "squawk on the street" back in a moment. [ male announcer ] you are a business pro.
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let's hop over to the cme. rick santelli is talking gold. >> you know, a couple of months ago we were talking about the notion of gold become securitized. it was much more of a paper trait than a real commodity trade. and this makes sense. if you look back several yores the big story is, maybe longer, that the correlation issues of many financial products needed some type of a counter ambulaba. there are many ways enough commodities. many are not enough to handle it. so this rising paper seems to fit the bill. one thing i notice that i find fascinating, when we see things like crude oil and gas prices going up, there's rigging and something is wrong and
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conspiracy theorys and when you see these huge trades of going down in gold, you don't hear about it. or the dollars of the futures, when they go up you don't hear about it. i guess there's a pick and choose element to that. russia has been accumulating it. russ russia's reserves are almost 10% go gold. i find it fascinating at this point in time. we have our pressurery department with a report that is nervous about currency. think of all the times we've had talks of making china currency manipulator. we are all currency manipulators. whether it's japan, the brits, the weak economy are all trying
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to fudge it a little bit. and last but not least on housing, there's definitely good things going on with housing. it's about about rental and multifamily. my opinion, the utility factor is trumping the investment side from the average guy to the middle class guy. and the business, wealth effect is moving to corporations as business and multifamily seem to be where the road is leading. that has big issues regarding how we have have looked at housing and how it is changing. >> there, mr. santelli. still ahead, which stocks within the home building sector should you be adding to your portfolio? suddenly, she does something unexpected
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after our coverage of this store yesterday, billionaire says he will refund taxpayers to the cost of carnival's 200 highest profile marine incidents. which probably means he'll be writing a check for over $4
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million. carnival now says it will voluntarily reimburse the treasury for the navy and coast guard attending the drifting of the triumph in february. this is clearly a direct response to the chairman of the commerce committee. jay rockefeller accused him of blood sucking for not covering the cost of carnival's 90 marine mishaps. he now tells cnbc he's glad carnival is opening up to the bare minimum of corporate responsibility. and putting the passenger safety above profits. the industry, however, is questioning whether this breaks the 50/50 deal that it thinks it has with the coast guard.
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remember yesterday we were told their captain detoured at the request of coast guard to help third parties in distress without reimbursements. whether that deal is broken or not, who knows. we will attend a shareholder meeting tomorrow in london. >> good update. thank you. if you're just joining us this morning, here is what you missed. >> welcome to hour three of "squawk on the street." here's what's happening so far. >> gold is really a psychological phenomenon, and that works as long as everybody thinks it will keep working, and the day when everybody doesn't think it's psychologically good anymore, it will suddenly be over. >> i think these are the wrong place. you have to buy good companies that are underfollowed, overlooked. that's the way to make money long term.
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>> i think goldman is very trusted. >> coca-cola defines the market. typically a year ago you would never pay this price. now people say i don't have to feed through their release and find out about the macro. >> i think earnings will drive the next step. commodities coming down will be a positive because so much of the inputs that go into the equities are so dependent on inputs going up and up. >> this is the biggest that we have seen in 30 years. it does look like the market is oversold. it's still going to look a little bit nervous. >> we are live here at post 9 of the new york stock exchange trying to get a sense of how the
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boston tragedy is going to affect trade today. s&p is up ten handles. microsoft is trading higher. despite all the negative sentiment, still has strength in the computering market. they say macro uncertainty is prompting clients to be more cautious. wel be be live in bost thon. scott cohen is there with the briefings we got about an hour and a half ago. good morning, scott. >> and expanding on that as well. behind ne authorities are describing this as the most complicated crime scene they've ever processed.
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it's a 12-block perimeter, down from 15 blocks, but still large. people who have had vehicles in parking garages are saying they nay not have access to them until tomorrow night. they don't want to touch anything that may create evidence in a situation still yielding more questions than answers. whoever did this set out to inflict maximum damage. authorities and doctors at the hospitals treating the ctim176 hospitalized, are talking about many, many amputations. people who have been injured by shrapnel of ball bearings packed into these explosive devices and many injuries were to the lower extremities. so the devices were low. the explosions went outward. whoever did this society out to attract attention. this was at a photographed venue. the finish line of the boston
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marathon. they were all kinds of cameras, tv cameras, surveillance cameras and cell phone cameras. and a short time ago the authorities appealing to the public to bring in videoe. the boston mayor said they are looking for any possible clue. >> a package that they were carrying around during the running of the race. face expressions that we see from people. that's a well covered neighborhood of our cameras in the retail establishment. we have a lot of footage to go through. >> and now it leads to the larger questions. this is an open event.
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they're crossing the finish line for hours on end. and joe lieberman speaking on nbc says it leads to a lot of questions about securing events like these. >> a lot of sports events have devices like that on the way in. i worry somebody thought about this and struck there because though there was plenty of security, it's not a controlled event in the way a stadium based event is. >> and now in an event that is normally full of high security, the call cue louse surrounding that has changed for sure. >> we are just being told now that the president will speak in the white house briefing room at 11 scln 30 a.m. eastern time. 24 minutes from now. large events around the globe
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being affected by events in boston. they are preparing for the london marathon and margaret tha thatcher funeral. >> right. the first event is tomorrow morning, the funeral of margaret tlavper. police security has already been stepped up in that event. now security officials are saying they will review security in light of the event in boston. there will be lockdowns in much of the city of london. here's what one official had to say about security at that event earlier. >> those who are responsible for these things are always constantly making sure that any measures that have to be taken are taken. >> >> now the u.s. will send a dell gag to the funeral
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tomorrow, including two former secretaries of states. james baker iii and george schultz. the london mar than happens on sunday. that involves 30,000 people. and it will wind through past some of the biggest iconic buildings. so they are also reviewing security there. they said the marathon will not be canceled. prince harry will be on hand to present prizes to the winners and any runners ra ran in the marathon in boston said they will wear jerseys for the boston marathon out of respect of what happened there. thank you for that. want to get back to the markets
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at home. trying to rebound yesterday. art is managing director of the capital markets. he was at his boston office yesterday about a mile from the bombings. art, it's good to have you. good morning. >> good to see you, carl. >> so this morning we got the briefing out of boston saying there are no additional known threats. what do you make of the rebound? is it a feeble attempt by the bulls? >> a little bit. it feels like this is the first time we've had multiple catalysts. we've had the results of the italian collection. the cyprus situation cost us a percent. now we're coming into two weeks worth of economic data today. so, you know, if the call for a pullback is going to happen is
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this is probably the only time we're going to see it. this is one of the first heavy weeks of earnings. we'll take our cues for that. we get a lot of safety names this week. and we keep a close eye on how they react to the news out this week. goldman off despite a decent quarter. target are warning -- and people are making the calculation whether this is weather related or some broader trend is going on regarding consumer confidence, which we know is fragil fragile. >> yeah, exactly. we're trying to figure out how much of this is weather. it didn't get nice this as of yet. and you put that next to gasoline prices being pretty expensive. is it weather-related? is this transitory?
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are we to work our way through the second quarter and see the consumer is doing okay? it's difficult to gauge that. st weather is always a factor for us. yes, this is a new thing this year. >> people point out the way the market keeps playing out, monday is generally bad. tuesday is generally good. and then broader. you know. is this beginning to feel to you like that script is coming to plan? >> it sure does. if u i don'ted to line that up you couldn't do any better. except for industrial production, we haven't really seen a positive data point in the last two weeks. then you get an earn iing expectations that are quite low.
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this will be the real test. >> yeah, a lot of earnings still to come. thanks a lot. commodities taking a big hit this week. we're going to find out what levels we should be watching and what may be next for both metals and oil. first rick santelli is going to watch the market as we are ready for the president speaking. >> artie is already talking my ear off so he'll be a good guest. gold is out. he has been in the business 30 years. business is slower than it used to be. why? let's talk specifics, especially with things like hedging. you don't want to miss it. bottom of the hour.
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getting developments regarding security a day after the attacks in boston. ber bertha coombs is at headquarters. >> we are seeing a spike in the report of suspicious packages. central terminal at laguardia airport was pushed back. a plane from the runway also reported and surround at logan airport. an evacuation took place in cleveland, reportedly as well. and the new york bomb squad was looking at a package in lower manhattan. it's one thing that authorities
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says happens in situationses like these but we don't know what went on in boston. they say this is a see something, say something situation. if you see something suspicious, you should report it. they are welcoming it to avoid any potential situations. >> some part of you has to say not surprising. we do have a 12-block crime scene in the city of boston. officials are asking the public for video and photo records of the marathon yesterday. and we know the centrals of security in boston, in washington, pennsylvania avenue closed to pedestrians, the net is going to get tighter andful. >> it does. in cities like new york where they hold these drills all the time, weekly, sometimes daily, it's now part of our routine. we understand when something
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happens somewhere else we go on higher alert so people expect to see their packages searched when they enter the subway. that was heightened once again in new york. i was talking to my mom she said it was happening the there. i said, it's been a reality here in new york for 12 years. >> that's what is going on as the governor of massachusetts said the city of boston is open. but it will not be business as usual. thank you. and the president will be speaking in the briefing room in just under 15 minutes time on the boston marathon. when it comes to the podium we'll take that live. a lot more "squawk on the street" is coming up next. zap technology. arrival.
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we're also watching laguardia airport in new york city where the central terminal has been evacuated due to a suspicious package. something you may expect given the tighter security around the country today. the fbi telling us there is no known additional threat. but we'll keep an eye on what happens over the next few minutes. let's get to rick santelli. >> yeah. dow is up today. i'll tell you what, when you shut the road to gold, you open another lane to equities. i don't necessarily believe the story but i certainly believe they're going higher. some people are cashing in. the talk about deflation that runs rampant is just going to fuel central banks to be more
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bubbliscious. >> i agree. the money has to find a home. it's hard to call that deflation. >> if i buy money from you every week and one day you say that's it. i'm never giving you another penny and i have to sell, is that a deflation or deleveraging story? >> i think it's all deleveraging. gold was a ten-year trade. this is not a surprise. especially when you think about the stocks that are paying the dividen dividends. and it costs you money to hold gold i think it was a trade for a while. >> i'm going to put you on the spot. you're getting close to your third decade.
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business on the trading floors, the relationship business, that's where the income is for people. matching trades on computers is good for exchanges, not good for humans. why do you think businesses and relationships have suffered so much in the last several years? >> well, this is directly related to the dodd frapgs rules. >> give me specifics, though. >> a lot of banks are spending all their time and energy now -- >> you're talking smaller ones? >> well, especially the harder ones. but the smaller banks get hit very hard. they wanting a level playing field for all the banks. there isn't a level playing field. the big banks can afford all the big technology and they're concentrating on doing that instead of getting business going in the country. >> do you think this is going to
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change? >> how long ago did we enact the dodd-frank laws? i have a question of whether or not they can ever be enforced. >> i don't know where i read this, and we're about out of time, but when you talk about enforcing these regulations, i can only thing of one thing. when it comes to your friends it's about interpretation. when it comes to your foes it's more about enforcement. back to you. >> getting word from wnbc that the port authority has given an all clear at laguardia. we are being told it's an all clear at lga as people begin to make their way back to the terminal. the president is about to speak on the tragedy in bost thon on matter of minutes.
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a lot of headlines flying regarding security. a plane being evacuated on the runway at logan international airport in boston. bertha coombs has the latest on that. >> we are getting the all clear in laguardia. it's the question of suspicious
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packages. they're much more on alert. they're watching updates for the fbi and out of boston. they are much more alert in their own area. you can see the picture of the ramp leading to the central terminal at laguardia airport. it had been cleared because of a report of a suspicious package. but now they are given the all clear so people can come back. clearly that's also impacting travel across the country as flights are delayed. flights can't land because of this heightened sense of alert. as far as we know, one official in washington saying having been briefed by national intelligence officials at this point they don't have much new other than what we are hearing over the air. they are working on what we call a lot of forensic reports. looking at the area to see if there are any clues left after
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that explosion, carl. >> of course, we are awaiting the president speaking. i believe we have a two-minute warning at the white house where he will begin speaking in the briefing room. no idea what detail he may bring to the situation. john harwood, yesterday he did say we will get to the bottom of this. what can we expect? >> i'm surprised he is making a statement this early in the day, carl. especially after we heard the boston authoritieses have a press conference in which they were beseeching the publish for help and assistance. which means they are just getting started in the investigation. they haven't been able to develop of picture of how this happened or who did it. perhaps he will appeal for calm and people being concerned
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around the country. you know, perhaps he will address the issue of terrorism. i did not use the word yesterday. an aide afterwards concerned the president was accused said well, of course an event with multiple explosive devices is by definition an act of terror. but for the president to use that word, it's freighted with all sorted of meaning. i think the white house was dlishtly cautious there. we'll see if he repeats that today. >> there are no known additional threats. but perhaps to deliver a reset given thavptcher's funeral. here is the president.
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and my homeland security adviser on the attacks in boston. we continue to deploy all appropriate law enforcement resources to protect our citizens and investigate and to respond to this attack. obviously our first thoughts this morning are with the victims, their families and the city of boston. we know two explosions took the lives of three people, including an 8-year-old boy. this was a heinous and cowardly act. given what we now know, the fbi is investigating it as an act of terrorism. any time bombs are used to target innocent civilians, it is an act of terror. what we don't yet know however is who carried out the attack or
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why. whether it was planned and executed by a terrorist organization, foreign or domestic, or was this individual we don't know. clearly we're at the beginning of our investigation. we will find out. we will find whoever harmed our citizens. we will bring them to justice. we also know the american people refuse to be terrorized. we saw stories of heroism and kindness and generosity and love. exhausted runners wo kept giving blood, some tearing off the own clothes to make tourniquets. the responder who is ran into
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the chaos to save lives. the men and women still saving them and those saying when we heard we all came in. the priests who opened their churches and ministered to the hurt and fearful and the good people of boston who opened their homes to the attack and those shaken by it. if you want to know what america is, how we respond to evil, that is it. selflessly, come pas passionately, unafraid. in the coming days we will pursue every effort to get to the bottom of what happened. i've directed the administration to protect the american people and this is a good time for us all to remember that we all have a part to play in alerting authorities. if you see something suspicious,
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speak up. i have confidence in the men and women of the fbi, the police department and the other agencies who responded so heroically and effectively in the aftermath of yesterday's events. and i know even as we protect our people and aggressively pursue this investigation, the people of boston will continue to respond in the same proud and heroic way that they have thus far. thank you very much. you can expect further briefings from our law enforcement officials as the day goes on. when we have more details, they will be disclosed. this is what we know now. we know as bombs that were set off. we know that obviously they did some severe damage. we do not know who did them. we do not know if this was an
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ability of an organization or individual or individuals. we don't have a sense of motive yet. everythi else at this point is peculation. as the fbi has more information. as our counter terrorism teams have more information, we'll make sure to keep you and the american people posted. all right? thank you very much, everybody. >> no questions for the president. reaffirming the country's commitment to finding the perpetrators of the attacks in boston. he did use the word terror saying any time bombs are used it really is an act of terror. nothing on if this is state sponsored or an individual. >> exactly because he doesn't know. he did a mix of all the things we were speculating about before the president came out. he said the fbi is investigating
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this as an act of terror. he called it evil and while sort of putting those words on the record, eliminating any potential vul nerkt or trying to indicate or eliminate vul nerkt that he was underplaying the import of this. he also rallied the country. he said we have shown the world who we are. he asked people to be vigilant about any particular threats or potential threats that they see to alertd authorities. and so i think this was the president simply on a day when we haven't seen any news advances that the shorts have been willing to tell us about yet schismly trying to put out a message of resolve, investigation, and trying to get the american people to go about their business and not be
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intimidated. >> very well said. we should point out the dow has been relatively resilient in the face of not only the president's briefing but the evacuation at laguardia. we do have an update about the situation in logan. >> carl, it had been a suspicious package. laguardia, the item that set off alarms was a piece of lighting equipment that had wires on it. so people are did he feel on high alert. to repeat again, the fbi says at this point there are no signs of an imminent threat. nearly 24 hours since the two deadly explosions that rocked boston's coppley square. they still have no suspects and few answers. they have cleared a number of suspicious packages. they say all they know is two deadly explosives near the
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finish line of the boston marathon. many people remain there this morning. some of them severely injured in critical condition. a 15-block area surrounding the square has been dropped to a 12-block area that will remain blocked off for days. no subways through there. . there had been two bomb sweeps prior to the marathon. police are now collecting video from surveillance cameras and actively appealing for any pictures or videos that may have been taken during the event as part of their investigation. they're talking to a number of witnesses throughout greater boston. the security remains on high alert. there is a report they did talk
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to one person who was in the hospital, but investigators tell nbc news they are no longer looking at this person as a person of interest. though they continue to talk with him. bertha coombs with an update at lagarde and and logan. i want to bring in terrorism expert. the former director of the national counterterrorism senter. any significance in his use of the word terror? something he was unwilling to do yesterday? >> think it's important for the pot say that. he has to be extremely careful about the language he uses i think it's important that he wants to show, and i'm sure he is, regardless that he is engaged. and he wants to give a sense of patience so the investigators and fbi and folks in boston can
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have time to develop the case. that will give him at least a bit of room so there are not quite as many people speculating about facts they don't yet know. given the evacuation a few moments ago. do you believe airports will be the locust of any heightened security? how do you think our lives will change in the near to medium term? >> i think it's going to be any place where you have large gatherings. there's random searches going on. i expect there are in places like new york and washington as well. police and authorities want to give people comfort and a threat
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people don't see. because it's still in the days and weeks. not minutes and hours. >> we had an update from london a few moments ago. a marathon of their own in london on sunday. municipal police departments are coordinating, not just in our own country, but across the ocean. >> until they figure out who they are linked to, there are no options taken off the table. and there are deep relations between the u.s., the u.k., and allies around the world and there are extensive communications. more importantly, potentially, do they have any leads? do the british have leads? have the canadians seen
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anything? no one is going to rule anything out on that front. >> this morning we make the comment over time, if this is someone who is state sponsored, their ambitions had to be curtailed because of the resilience of law enforcement and the way we kept these attacks for happening in the country. do you see that as a positive or is this a failure of security? something to be worried about? >> well, it's so hard to look for the bright side when you have the tragic death of three and the wounding of almost 200. but that being said, the response between the federal and local governments was really spectacular. lies were probably saved there. the coordinated response to heightened security in other cities. these are all good news stories. so we're not going to stop every attack. that doesn't mean the system is failed.
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i don't think people should look and say we're no safer than 2001. that's not the case. thanks. nbc news terrorism expert. when we come back, the earnings squad is standing by to break down the numbers. there are a lot of them today. coke, j&j, goldman sachs to name a few. but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason
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welcome to the earnings squad. we dissect the earnings stories everyone is talking about and help you on the stories you may have missed. i'm melissa lee with herv greenberg and today we are joined by cnbc's own mary thompson. first off, let's get to the score card with 8% of companies reporting so far. 10% net estimates. they all beat wall street estimates. johnson&johnson with help of the new medicines and over the counter drugs. yesterday we told you to watch
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grangeer. new 52-week high on the back of strong profits. and child goldman sachs beat expectations, they're only up 1% from a year ago. mary thompson has been following the story. why the move lower here? >> i think a couple of things. harvey talked a lot about what they were seeing. he spoke about very strong in january and february. good data in the u.s. in february. they were strong payroll numbers. but then in march he says things started to turn a little bit. clients became more cautious. they were concerns about cyprus over in europe and here in u.s. he said it was the budget sequestration. in fact, listen, let's see if we can pull this up right now. you can hear exactly what he had to say. >> later in the quarter market sentiment was mixed as political
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uncertainty began to resurface. the italian election added further complexity to the european outlook. >> and then concerns about the budget and sequestration. >> is that the theme of all the budgets? >>, certainly there's been the idea of the corns on the consumer. the concerns about the budget. that colors what people are deciding in the c-suite. we've been hearing that from a number of the banks. whether it be concerns about the budget or the debt ceiling, it's one of these issues. >> and all of these come as the banks are performing very well. if you want to know whether they are safer, if they are better businesses compared to a year ago, that's another question, right, mary? >> take a look at the revenue. a number of banks would argue,
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yes, we are safer. but as far as revenue goes, this is speaks to how the businesses are performing. really the growth on the revenue front isn't there. it's either down or very slight increases in revenue growth. you are seeing improvement in profitability as these companies continue to cut costs. they're being very, very aggressive on expense management. and that's helping to drive the bottom line. >> let's get to ww gragranger. this is a big move in today's session. >> there was a company in the machinery and repair business, a good window into the industrial businesses, $240 stock, which is a big stock that people tend not to talk about. they miss sales estimates. sales continue to grow. interesting. they blamed it on one day less in the quarter. by the way, that's an excuse we'll continue to see throughout
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the quarter. the company doesn't have an earnings call. >> they didn't say anything bad. they basically talked about how the light and medium machinery business high-single digit growth. >> this is one to watch. we are also watching johnson and johnson. we are talking about this on the earnings squad, like yesterday, hitting a 52-week high. remember they had a series of recalls. they are showing some progress when it comes to otc, the over-the-counterpart of the business, including tylenol, the leader. it was up 14% in the united states. phrma sales were up 10%. we mentioned watch this. zarelta did beat the consensus in farms of gains there. we did see strong pharma sales. these are stocks that have run
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massively ahead of the earnings, and the question is do investors continue to pay up for this in terms of sequestration. maybe this is a continued safety play here. >> i want to point out with the otc, that ultimately affects a company like parigo. >> if you want to join the conversation, tweet us at #earningssquad. we'll be back during "street signs" with updates. much more reaction on the street, plus cold and rainy spring weather hurting one of the biggest retailers. find out which company just cut its forecast. back right after this. zap technology.
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coming up on "the half," the gold may be rebounding today but where is it headed tomorrow? the top commodity gives us the winning trade. and google and apple. we are taking our positions ahead of key earnings this week. and we are calling out one of our own over a losing trade. what's his next move? that's all at the top of the hour. target is one of the few losers today down after cutting its forecast for the first quarter profit. reagan is back at hq with whether this is weather or something more. >> i like that whether or not it is weather or not. target is warning its first quarter profit will miss forecasts. big box discounter target expects same store sales to be
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flat and sub constituent earnings including the canadian segment to be below adjusted guidance of 87 to 97 cents per share. analysts were looking for 97 on that same basis. now target is citing, quote, softer than expected sales trends, particularly in seasonal and weather-sensitive categories for the projected earnings miss. again, just a projection at this point. now a number of analysts and industry watchers have been expressing concern about old man's winter persistence. paul walsh says the lingering cold impacts 60% of u.s. households after the coldest march in nearly two decades. and in a research note to clients, jpmorgan analyst matt boss says the ruling for seasonal apparel is a one-degree temperature expecting an 8% change in dresses and short sales. that's a big number for just a little temperature change. carl? >> people are making hay out of the facts their comps over the past few quarters have gotten smaller and smaller. we'll see how much really was weather.
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thank you, court. check out the markets with session highs going on. dow up 133. s&p up 17. with those two, they have reclaimed roughly half of what they lost yesterday. the s&p was down 36 yesterday. so 15.50 and above is making up more than half the loss. we'll see what happens this afternoon. a lot of this happening since europe closed a half hour ago. after the break, some final thoughts on the market rebound today as the dow is back up triple digits. again, that session high, back in a couple minutes. (announcer) at scottrade, our clients trade and invest
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take a look at markets sitting before the break at session highs. the dow almost up 130. the s&p is up 16 and change. a ten nasdaq is up 38. the upper performance led by the nas due to tech stocks. apple is doing well even though jeffreys said how bad the quarter is going to be. microsoft getting an upgrade today from morgan stanley. two overweight. they have price target at 36. they say in their words sentiment is set to trough and that the market is overlooking a lot of positive catalysts about the adoption rates for windows 8. and we are finally getting news

Squawk on the Street
CNBC April 16, 2013 9:00am-12:00pm EDT

News/Business. Melissa Lee, Carl Quintanilla, David Faber. Opening bell market action. New.

TOPIC FREQUENCY Boston 77, Us 23, Fbi 14, Goldman 12, U.s. 12, Carl 10, Cyprus 10, Europe 9, New York 8, China 8, United States 7, London 6, Massachusetts 6, Jim 5, Scott Cohn 5, Washington 5, S&p 5, Logan 4, America 4, Dell 4
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